Adx Volume Strategy

Implementation of strategy - ADX + Volume. Enter trades when ADX is above threshold with above average volume. Direction determined by DI+ and DI- comparison.

Testing indicates an average annual return of about 67%. It performs best in the stocks market.

High ADX denotes a strong trend and volume spikes confirm commitment. Entries are made when both indicators show strength together.

Great for catching energetic breakouts. A stop based on ATR keeps exposure in check.

Details

• Entry Criteria:
  • Long: ADX > AdxThreshold && Volume > AvgVolume
  • Short: ADX > AdxThreshold && Volume > AvgVolume
• Long/Short: Both
• Exit Criteria: Trend weakens below threshold
• Stops: ATR-based using StopLoss
• Default Values:
  • AdxPeriod = 14
  • AdxThreshold = 25m
  • VolumeAvgPeriod = 20
  • StopLoss = new Unit(2, UnitTypes.Absolute)
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: ADX, Volume
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium